Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 427108
Title Individual Investor Perceptions and Behavior During the Financial Crisis
Author(s) Hoffmann, A.O.I.; Post, T.; Pennings, J.M.E.
Source Journal of Banking and Finance 37 (2013)1. - ISSN 0378-4266 - p. 60 - 74.
DOI http://dx.doi.org/10.1016/j.jbankfin.2012.08.007
Department(s) Marketing and Consumer Behaviour
WASS
Publication type Refereed Article in a scientific journal
Publication year 2013
Keyword(s) common-stock investment - subprime crisis - risk-taking - market - overconfidence - returns - fluctuations - performance - dispersion - sentiment
Abstract Combining monthly survey data with matching trading records, we examine how individual investor perceptions change and drive trading and risk-taking behavior during the 2008–2009 financial crisis. We find that investor perceptions fluctuate significantly during the crisis, with risk tolerance and risk perceptions being less volatile than return expectations. During the worst months of the crisis, investors’ return expectations and risk tolerance decrease, while their risk perceptions increase. Towards the end of the crisis, investor perceptions recover. We document substantial swings in trading and risk-taking behavior that are driven by changes in investor perceptions. Overall, individual investors continue to trade actively and do not de-risk their investment portfolios during the crisis.
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